Fitch Affirms JP Morgan 2007-FL1; Revises Outlooks on 3 Classes

May 21, 2014 02:16 PM Eastern Daylight Time

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed all classes of J.P. Morgan Chase Commercial
Mortgage Securities Corp. series 2007-FL1. In addition, Fitch has
revised the Rating Outlook for classes B, C and D to Stable from
Negative. A detailed list of rating actions follows at the end of this
release.

KEY RATING DRIVERS

The transaction has experienced significant principal paydown (44.7%)
since Fitch's last rating action from the payoff of three loans.
Although credit enhancement has increased, upgrades are not warranted
due to loan concentration (only two loans remaining in the trust), as
well as the loan status of the remaining assets, both of which remain
with the special servicer. The ratings of classes B and C are affirmed
at 'A' as interest shortfalls continue to affect these classes.
Additional information on Fitch's criteria surrounding interest
shortfalls and rating caps is available in the criteria report at the
end of the press release. The non-pooled junior component certificates
have also been affirmed based on Fitch's loss expectation on the Resorts
International loan.

The PHOV loan (50.8%) is currently secured by a portfolio of eight
full-service hotels located in FL, CA, SC and IL, totaling 2,066 rooms
(following the previous release of four hotel properties). The loan was
restructured in October 2012 and a forbearance agreement is in place
until July 9, 2014. The loan is performing under the modification terms
and is expected to refinance by the end of the forbearance.

Per STR reporting, year-end (YE) 2013 portfolio occupancy, ADR and
RevPar were 75.9%, $130.07, and $105.98, compared to the competitive set
occupancy, ADR and RevPar of 74.5%, $141.98, and $107.85, respectively.

The Resorts International Portfolio (49.2%) currently consists of two
hotel/gaming properties in Tunica, MS, totaling 439 rooms (following the
previous release of two hotel/gaming properties). The properties became
real estate owned (REO) assets in November 2011. Collateral performance
remains well below expectations from issuance. The servicer is working
to stabilize the properties prior to marketing the assets for sale. Both
properties are currently under renovation.

RATING SENSITIVITIES

Fitch analyzed each loan individually based on servicer provided YE 2013
cash flow and ran multiple scenarios which assume the PHOV Portfolio
loan pays off, or in another case fails to refinance. The outcomes of
these two scenarios and the impact to the trust were then considered in
Fitch's rating recommendations.

The PHOV Portfolio is serviced by Strategic Asset Services LLC. The
Resorts International Portfolio loan is serviced by KeyBank Real Estate
Capital. If the PHOV Portfolio loan does not pay off, future downgrades
to class E are possible.

Fitch affirms the following classes and revises Rating Outlooks as
indicated:

--$362,286 class B at 'Asf'; Outlook to Stable from Negative;

--$32.4 million class C at 'Asf'; Outlook to Stable from Negative;

--$30.8 million class D at 'BBBsf'; Outlook to Stable from Negative;

--$37.3 million class E at 'Bsf'; Outlook Negative;

--$26 million class F at 'CCCsf'; RE100%';

--$26 million class G at 'CCsf'; RE40%;

--$35.7 million class H at 'Csf'; RE0%;

--$32.5 million class J at 'Csf'; RE0%;

--$10.3 million class K at 'Dsf'; RE0%.

--Class L at 'Dsf'; RE0%;

--$11.9 million class RS-1 at 'Csf'; RE0%;

--$12.8 million class RS-2 at 'Csf'; RE0%;

--$15.6 million class RS-3 at 'Csf'; RE0%;

--$11.1 million class RS-4 at 'Csf'; RE0%;

--$15.4 million class RS-5 at 'Csf'; RE0%;

--$13.2 million class RS-6 at 'Csf'; RE0%;

--$7.6 million class RS-7 at 'Csf'; RE0%.

Classes A1, A2 and the interest-only class X-1 have paid in full. Fitch
withdrew its rating on the interest-only class X-2 at prior review.

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND
DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING
THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS.
IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE
AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'.
PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS
SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS
OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES
AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF
THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE
RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR
RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY
CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH
WEBSITE.